Tumbling Turkish ETF draws controversy

Tumbling Turkish ETF draws controversy

TUR plunged during last Friday’s after-hours session following a failed coup against Turkish President Recept Tayyip Erodgan, according to ETF Trends. That led to declines of more than 6% on Monday. Turkey’s central bank tried to calm investors by lowering interest rates to 8.25%, and said it’s ready to provide liquidity to the country’s banks if necessary.

But that didn’t stop TUR from tumbling again on Tuesday as investors worried the coup attempt could precipitate further political turmoil – straining Turkey’s fragile hold on its investment-grade credit rating, ETF Trends reported.

Turkey has been struggling with an economic slowdown due to political instability, threats from the Islamic State and a war with Kurdish militants, according to ETF Trends. But Barron’s said the country’s debt probably won’t be downgraded to junk just yet.